I have been researching about opening an LLC myself, and I have found the the top "business-friendly" States to establish an LLC are: Delaware, Nevada and Wyoming. So far, I am leaning more toward Wyoming because it is cheaper overall to form the corporation and has more privacy for LLCs than the other States, especially Delaware.

Good thing about an LLC is that you can be from another country and still be easily allowed to set-up your company right here in the U.S. You can check out sites like myllc.com and legalzoom.com for more details.

Yes, it is for tax reasons mostly. I believe Delaware has something to do with business law as well, which is why a ton of huge companies are there. I have a Wyoming LLC and another in NY. I know that in NY you need to have at least 2 people for an LLC, but in Wyoming you only need 1. In Wyoming you use what's called a Register Agent, which is someone who lives in the state; so you don't have to be local. I used a lawyer for the NY one, and the Wyoming one I got done at SmallBiz.com. Hope that helps.

If you don't live in Delaware, or the country you may be subject to double taxation. You will have to either claim the dividends from the corporation or personal tax depending on how you set it up. And you will pay income tax for what ever state or country you live in. The biggest benefit for me to form corporations was to right off costs and to secure loans to build more business. Plus, lease vehicles, computers, office space etc...

Your best bet is to form a corporation in the country you live in. IRS doesn't play around about there money. They will drain entire bank accounts without notice.

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